The collaboration of Gyft, an online portal for digital gift cards with Chain brings gift cards on the bitcoin blockchain. Embraced with the blockchain technology, Gyft offers small businesses quick, cost-effective and secure solutions to make gift cards easier for exchange.
Gyft is the latest and foremost data subsidiary which is using Chain’s platform to power USD digital gift card transfer, redemption and issuance for small and medium businesses. These USD denominated gift cards are powered by Internet and Open Protocols. Using the blockchain would lead to an improvement in security over the present gift-card system. The present system is suffering a lot of fraud whereas the blockchain-powered process will generate a new address for every transaction even if the final destination is same.
How blockchain shapes a future platform for gift cards
Gift card assets which are basically static codes must be kept secured. The entities from merchant to processor, aggregator to reseller, etc share codes that are easily compromised. These codes are made unchangeable from the time they are issued and till the time redeemed. Every single party in this chain of exchange including reseller, gift buyer, distributor and processor must be trusted to keep the codes protected from thieves.
Unfortunately, these codes do get compromised, resulting in a bad consumer experience. Once a code is compromised, it might not be detected upon redemption. However, after detecting that a code was compromised, it becomes impossible to recognize the party that broke the chain of trust. Gyft enables any small or midsize business with Clover point-of-sale system to eliminate costs and harness the benefits. By replacing paper certificates with gift cards, the chances of cards being stolen, lost or counterfeited also gets decreased or reduced.
Blockchain issued digital gift cards will open new opportunities for merchants and brands.